What is Investment?

In simpler terms investment can be explained as putting your money into financial assets in order to gain profits. Now these profits could be in the form of interest or new income or just appreciation of the value of the assets.

Who are the people who invest?

Any one in this world can invest. Investment is involved in many areas of economy. Investment could be done by individuals, or by a group of family members. Investment can also be done by larger scale by firms, or government on various projects.

What are the investment choices available?

Investment choices depend on the person investing and the reason why they are investing. In simpler terms the most common investment choices are property, commodity, stocks, financial derivatives, stocks, bonds, currency trading, automobiles, etc.

Are there risks involved?

Any form of investment always comes with certain amount of risk involved. The main risk is loss of the principle sum, or the initial money invested. The risk level depends on the type of investment. If some form of investment has not been thoroughly researched then the risk for such an investment is high.

What is an asset?

Asset can be defined as anything that can be owned or that can be controlled by an individual or a group of [person in order to produce profit or value. There are 2 major types of assets. The first one is known as the tangible asset and the second one known as the intangible asset. Tangible assets are physical assets for example buildings, equipments, etc. the intangible assets are non physical assets, but play a vital role in financial world. An example of such an asset is good will, copyrights, patents, etc.

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